[vc_row][vc_column][vc_custom_heading text=”What is TSP?” font_container=”tag:h2|font_size:20px|text_align:left|color:%23363636″ google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:500%20bold%20regular%3A500%3Anormal” css=”.vc_custom_1527246561972{margin-bottom: 20px !important;}”][/vc_column][/vc_row][vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]The stock market seemed to have performed well for investors in July:
• Dow Jones: up 4.3%
• S&P 500 (the index the C fund is based on) – gained 3.1%
• Nasdaq – up 1.6%
Highest Performing TSP Funds in July
All the Thrift Savings Plan (TSP) funds showed positive returns for July.
S Fund on Top for Past 12 Months & C Fund on Top for July
- Also Read: 3 Reasons Certain Federal Employees Can Retire Years Earlier Than Their Peers Without Penalties
- Also Read: CSRS Retirement in 2024: Are You Making the Most of What This Classic Plan Has to Offer?
- Also Read: Roth IRA Basics for Beginners: What’s There to Learn?
When looking at year-to-date, the S Fund shows a return of 7.91% and is on top of all TSP Funds. However, the C Fund is a close second for the YTD with a return of 6.45%.
For more information, the rate of return for each fund by month for each year can be found at TSPDataCenter.com.
How TSP Participants Tend to Allocate Their Investments
Overall, the highest long-term returns are found with stocks over bonds. However, sometimes stocks fall, but bonds don’t. A great example of this is when stocks dropped significantly from 2001-2003, and the C Fund trended downward for three straight years:
• In 2000: down -9.14%
• In 2001: down -11.94%
• In 2002: down -22.05%
However, the G fund went up over the course of these same years:
• in 2000: up +6.42%
• in 2001: up +5.29%
• in 2002: up +5%
G Fund investors were undoubtedly pleased with their decision to put more money into the G Fund overstocks. Although, in the midst of this downturn in stocks where the World Trade Center Bombing occurred. While events such as these are highly unusual, they do happen.
However, for 13 out of the next 15 years, the C fund climbed and finished ahead of the G fund, which in some years this was quite a substantial amount.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”34137″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]
